Myth: Market value should be similar to the assessed value of the property.
Reality: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always.
Usually when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Newbury Park have not been reassessed for quite some time, it may vary widely.
Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the opinion of value of the house will vary.
Reality: The value of the home does not affect the pay of the appraiser; as a result, the appraiser has no vested interest in the value of the house. Obviously, he will provide business with impartiality and independence regardless of for whom the appraisal is produced.
Myth: Market value will be the same as replacement cost.
Reality: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a house without being under duress from any external party to buy or sell.
Replacement value is the dollar amount necessary to rebuild a property in-kind.
Myth: Appraisers use a formula, such as a certain price per square foot, to figure out the value of a house.
Reality: Appraisers complete a full analysis of all factors pertaining to the value of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.
Myth: As houses increase in value by a certain percentage - in a robust economic state - the houses in proximity are figured to increase by the same amount.
Reality: Any value an appraiser derives concerning a particular house is always individualized, based on certain factors pulled from the information of comparable homes and other specifications within the property itself.
It doesn't matter if the economy is doing well or declining.
Myth: The house's outside is determinate of the actual value of the property; it is unnecessary to do an interior appraisal.
Reality: To conclude a concrete value beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and current market trends.
An external inspection definitely can't provide all of the information needed.
Myth: Since you're the one providing the money for the appraisal when applying for the loan to purchase or refinance real estate, you own the provided appraisal.
Reality: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal.
Due the Equal Credit Opportunity Act, any home buyer requesting a copy of the report must be given it by their lender.
Myth: There's no point for home buyers to even worry about what the appraisal contains so long as their lending company is satisfied.
Reality: A home buyer should definitely inspect their appraisal; there might be some questions or some concerns with the accuracy of the analysis that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal makes an excellent record for future reference, containing helpful and often-revealing data - including the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the proximity.
Myth: The only reason someone would hire an appraiser is if a home needs its value assessed in a lender sales transaction.
Reality: Depending upon their qualifications and designations, appraisers can and often do perform a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: A home inspection report has a completely different purpose than an appraisal.
The purpose of an appraisal is to arrive at an opinion of market value during the appraisal process and the completion of the report.
The job of a home inspector is to find the condition of the house and its major components, then provide a report on these findings.
